13-Oct-2026 07:48:30
CLSA on HCL tech ; Hold, TP Rs 1094
Reported largely in-line revenue, a strong order book, a steady ramp-up of its advanced AI revenue and a 4%/6% beat on Ebit/EPS compared to consensus FY27 guidance for revenue, now including 87bps from inorganic, was revised up to 2.5-4% from 1-4%, implying a largely stable midpoint. Guidance for Ebit margins was maintained at 17.5-18.5% Believe HCLT has a credible AI strategy revolving around ecosystem partners, physical AI, Agentic AI, AI factory, etc., which along with aggression around large deal wins, positions it well to gain market share. We increase our EPS estimate by 2% for FY27 and keep outer years largely the same on the back of the strong Ebit margin beat. On CC revenue growth for FY27, we forecast 3%, closer to the lower end of guidance considering the deteriorating and volatile macro environment ahead.
HCL TECHNOLOGIES LTD